KBS Real Estate Investment Trust II (KBRS) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 10, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	KBS Real Estate Investment Trust II, Inc.
Entity Central Index Key	0001411059
Entity Filer Category	Non-accelerated Filer
Current Fiscal Year end	--12-31
Entity Common Stock, Shares Outstanding		186,037,840

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Real estate:
Land	$ 137,536	$ 137,536
Buildings and improvements	853,897	847,969
Tenant origination and absorption costs	29,192	30,863
Total real estate held for investment, cost	1,020,625	1,016,368
Less accumulated depreciation and amortization	(162,449)	(154,825)
Total real estate held for investment, net	858,176	861,543
Real estate held for sale, net	91,789	92,664
Total real estate, net	949,965	954,207
Cash and cash equivalents	43,853	57,730
Restricted cash	18,816	17,957
Rents and other receivables, net	85,266	89,549
Above-market leases, net	206	224
Assets related to real estate held for sale	7,803	7,962
Prepaid expenses and other assets	32,837	29,388
Total assets	1,138,746	1,157,017
Notes payable:
Notes payable, net	373,875	373,927
Notes payable related to real estate held for sale, net	41,344	41,281
Total notes payable, net	415,219	415,208
Accounts payable and accrued liabilities	49,955	48,903
Due to affiliate	78	55
Distributions payable	3,842	3,874
Below-market leases, net	244	308
Liabilities related to real estate held for sale	4	6
Other liabilities	15,729	17,189
Total liabilities	485,071	485,543
Commitments and contingencies (Note 9)
Redeemable common stock	8,633	10,000
Stockholders’ equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value; 1,000,000,000 shares authorized, 186,188,796 and 186,464,794 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	1,862	1,865
Additional paid-in capital	1,667,900	1,667,897
Cumulative distributions in excess of net income	(1,024,720)	(1,008,288)
Total stockholders’ equity	645,042	661,474
Total liabilities and stockholders’ equity	$ 1,138,746	$ 1,157,017

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	186,188,796	186,464,794
Common stock, shares outstanding (in shares)	186,188,796	186,464,794

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Rental income	$ 27,885	$ 33,127
Interest income from real estate loans receivable	0	260
Other operating income	1,997	2,289
Total revenues	29,882	35,676
Expenses:
Operating, maintenance, and management	9,302	8,525
Real estate taxes and insurance	5,083	4,818
Asset management fees to affiliate	2,657	2,775
General and administrative expenses	1,673	1,812
Depreciation and amortization	11,785	13,861
Interest expense	4,481	4,974
Total expenses	34,981	36,765
Other income:
Other interest income	199	202
Loss from extinguishment of debt	0	(92)
Total other income	199	110
Net loss	$ (4,900)	$ (979)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.03)	$ (0.01)
Weighted-average number of common shares outstanding, basic and diluted (in shares)	186,376,862	187,580,675

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Cumulative Distributions and Net Income (Loss)
Balance (in shares) at Dec. 31, 2017		187,666,302
Balance at Dec. 31, 2017	$ 684,582	$ 1,877	$ 1,673,767	$ (991,062)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(979)			(979)
Redemptions of common stock (in shares)		(261,092)
Redemptions of common stock	(1,277)	$ (3)	(1,274)
Transfers from redeemable common stock	1,277		1,277
Distributions declared	(11,309)			(11,309)
Balance (in shares) at Mar. 31, 2018		187,405,210
Balance at Mar. 31, 2018	$ 672,294	$ 1,874	1,673,770	(1,003,350)
Balance (in shares) at Dec. 31, 2018	186,464,794	186,464,794
Balance at Dec. 31, 2018	$ 661,474	$ 1,865	1,667,897	(1,008,288)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4,900)			(4,900)
Redemptions of common stock (in shares)		(275,998)
Redemptions of common stock	(1,367)	$ (3)	(1,364)
Transfers from redeemable common stock	1,367		1,367
Distributions declared	$ (11,532)			(11,532)
Balance (in shares) at Mar. 31, 2019	186,188,796	186,188,796
Balance at Mar. 31, 2019	$ 645,042	$ 1,862	$ 1,667,900	$ (1,024,720)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities:
Net loss	$ (4,900)	$ (979)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	11,785	13,861
Noncash interest income on real estate-related investments	0	1
Deferred rent	1,788	873
Bad debt expense	0	71
Amortization of above- and below-market leases, net	(48)	181
Amortization of deferred financing costs	332	274
Loss from extinguishment of debt	0	92
Changes in operating assets and liabilities:
Rents and other receivables	2,460	344
Prepaid expenses and other assets	(4,344)	(3,599)
Accounts payable and accrued liabilities	819	(1,209)
Due to affiliate	23	20
Other liabilities	(1,460)	7,398
Net cash provided by operating activities	6,455	17,328
Cash Flows from Investing Activities:
Improvements to real estate	(6,221)	(5,504)
Principal repayments on real estate loans receivable	0	43
Net cash used in investing activities	(6,221)	(5,461)
Cash Flows from Financing Activities:
Proceeds from note payable	0	375,000
Principal payments on notes payable	(321)	(365,092)
Payments of deferred financing costs	0	(2,725)
Payments to redeem common stock	(1,367)	(1,277)
Distributions paid to common stockholders	(11,564)	(11,791)
Net cash used in financing activities	(13,252)	(5,885)
Net (decrease) increase in cash and cash equivalents and restricted cash	(13,018)	5,982
Cash and cash equivalents and restricted cash, beginning of period	75,687	86,643
Cash and cash equivalents and restricted cash, end of period	62,669	92,625
Supplemental Disclosure of Cash Flow Information:
Interest paid	4,026	5,616
Supplemental Disclosure of Noncash Transactions:
Accrued improvements to real estate	5,051	6,224
Distributions payable	$ 3,842	$ 3,894

ORGANIZATION

ORGANIZATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION KBS Real Estate Investment Trust II, Inc. (the “Company”) was formed on July 12, 2007 as a Maryland corporation that elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2008. The Company conducts its business primarily through KBS Limited Partnership II, a Delaware limited partnership formed on August 23, 2007 (the “Operating Partnership”), and its subsidiaries. The Company is the sole general partner of and directly owns a 0.1% partnership interest in the Operating Partnership. The Company’s wholly-owned subsidiary, KBS REIT Holdings II LLC, a Delaware limited liability company formed on August 23, 2007 (“KBS REIT Holdings II”), owns the remaining 99.9% partnership interest in the Operating Partnership and is its sole limited partner. The Company invested in a diverse portfolio of real estate and real estate-related investments. As of March 31, 2019 , the Company owned eight office properties ( two of which were held for sale) and an office campus consisting of five office buildings. Subject to certain restrictions and limitations, the business of the Company is managed by KBS Capital Advisors LLC (the “Advisor”), an affiliate of the Company, pursuant to an advisory agreement the Company renewed with the Advisor on May 21, 2018 (the “Advisory Agreement”). The Advisory Agreement may be renewed for an unlimited number of one -year periods upon the mutual consent of the Advisor and the Company. Either party may terminate the Advisory Agreement upon 60 days’ written notice. The Advisor owns 20,000 shares of the Company’s common stock. Upon commencing its initial public offering (the “Offering”), the Company retained KBS Capital Markets Group LLC (the “Dealer Manager”), an affiliate of the Advisor, to serve as the dealer manager of the Offering. The Company ceased offering shares of common stock in its primary offering on December 31, 2010 and terminated its primary offering on March 22, 2011. The Company terminated its dividend reinvestment plan effective May 29, 2014. The Company sold 182,681,633 shares of common stock in its primary offering for gross offering proceeds of $1.8 billion . The Company sold 30,903,504 shares of common stock under its dividend reinvestment plan for gross offering proceeds of $298.2 million . Also as of March 31, 2019 , the Company had redeemed 27,416,341 shares sold in the Offering for $253.1 million .

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2018 , except for the Company’s adoption of the lease accounting standards issued by the Financial Accounting Standards Board (“FASB”) effective on January 1, 2019. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The consolidated financial statements include the accounts of the Company, KBS REIT Holdings II, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates. Per Share Data Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2019 and 2018 . Distributions declared per common share were $0.062 and $0.060 in the aggregate for the three months ended March 31, 2019 and 2018 , respectively. Distributions declared per common share assumes each share was issued and outstanding each day that was a record date for distributions and were based on a monthly record date for each month during the periods commencing January 2019 through March 2019 and January 2018 through March 2018 . Segments The Company invested in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. As of March 31, 2019 , the Company aggregated its investments in real estate properties into one reportable business segment. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. Upon adoption of the lease accounting standards of Topic 842 on January 1, 2019 (described below), the Company accounted for tenant reimbursements for property taxes, insurance and common area maintenance as variable lease payments and recorded these amounts as rental income on the statement of operations. For the three months ended March 31, 2018 , the Company reclassified $2.9 million of tenant reimbursement revenue for property taxes, insurance, and common area maintenance to rental income for comparability purposes. In addition, during the three months ended March 31, 2019 , the Company classified two office properties as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented. Revenue Recognition - Operating Leases Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and tenant reimbursements and would recognize rental income only if cash is received. Beginning January 1, 2019, these changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. Prior to January 1, 2019, bad debt expense related to uncollectible accounts receivable and deferred rent receivable was included in operating, maintenance, and management expense in the statement of operations. Any subsequent changes to the collectibility of the allowance for doubtful accounts as of December 31, 2018, which was recorded prior to the adoption of Topic 842, are recorded in operating, maintenance, and management expense in the statement of operations. Beginning January 1, 2019, the Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statement of operations, as these costs are no longer capitalizable under the definition of initial direct costs under Topic 842. Square Footage, Occupancy and Other Measures Square footage, occupancy, number of tenants and other similar measures, including annualized base rent and annualized base rent per square foot, used to describe real estate investments included in these condensed notes to the consolidated financial statements are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Recently Issued Accounting Standards Update In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available-for-sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. ASU No. 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and to disclose the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop the Level 3 fair value measurements. In addition, public entities are required to provide information about the measurement uncertainty of recurring Level 3 fair value measurements from the use of significant unobservable inputs if those inputs reasonably could have been different at the reporting date. ASU No. 2018-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is still evaluating the impact of adopting ASU No. 2018-13 on its financial statements, but does not expect the adoption of ASU No. 2018-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTMENT

REAL ESTATE HELD FOR INVESTMENT	3 Months Ended
	Mar. 31, 2019
Real Estate [Abstract]
REAL ESTATE HELD FOR INVESTMENT	REAL ESTATE HELD FOR INVESTMENT As of March 31, 2019 , the Company’s portfolio of real estate held for investment was composed of six office properties and an office campus consisting of five office buildings, encompassing in the aggregate approximately 3.8 million rentable square feet. As of March 31, 2019 , the Company’s real estate portfolio was 71% occupied. The following table summarizes the Company’s real estate portfolio as of March 31, 2019 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net 100 & 200 Campus Drive Buildings 09/09/2008 Florham Park NJ Office $ 154,525 $ (17,997 ) $ 136,528 300-600 Campus Drive Buildings 10/10/2008 Florham Park NJ Office 162,054 (23,138 ) 138,916 Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office 111,740 (23,282 ) 88,458 Union Bank Plaza 09/15/2010 Los Angeles CA Office 187,620 (30,204 ) 157,416 Granite Tower 12/16/2010 Denver CO Office 137,233 (29,563 ) 107,670 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,384 (24,621 ) 94,763 Corporate Technology Centre 03/28/2013 San Jose CA Office 148,069 (13,644 ) 134,425 $ 1,020,625 $ (162,449 ) $ 858,176 As of March 31, 2019 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Union Bank Plaza Los Angeles, CA 627,334 $ 157,416 13.8 % $ 19,921 $ 43.25 73 % 300-600 Campus Drive Buildings Florham Park, NJ 578,388 138,916 12.2 % 17,895 33.58 92 % 100 & 200 Campus Drive Buildings Florham Park, NJ 590,458 136,528 12.0 % 13,715 30.57 76 % Corporate Technology Centre (2) San Jose, CA 415,700 134,425 11.8 % — — — % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) The lease for the single tenant who occupied Corporate Technology Centre expired on October 31, 2018. Operating Leases The Company’s real estate properties held for investment are leased to tenants under operating leases for which the terms and expirations vary. As of March 31, 2019 , the leases had remaining terms, excluding options to extend, of up to 14.1 years with a weighted-average remaining term of 6.3 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or part of the leased premises after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $3.0 million and $2.5 million as of March 31, 2019 and December 31, 2018 , respectively. During the three months ended March 31, 2019 and 2018 , the Company recognized deferred rent from tenants, net of lease incentive amortization, of $(1.8) million and $(0.9) million , respectively. As of March 31, 2019 and December 31, 2018 , the cumulative deferred rent balance was $82.3 million and $84.0 million , respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $40.7 million and $41.7 million of unamortized lease incentives as of March 31, 2019 and December 31, 2018 , respectively. As of March 31, 2019 and December 31, 2018 , lease incentive payable was $34.7 million and $35.2 million , respectively, and is included in accounts payable and accrued liabilities on the accompanying balance sheets. As of March 31, 2019 , the future minimum rental income from the Company’s properties held for investment under non-cancelable operating leases was as follows (in thousands): April 1, 2019 through December 31, 2019 $ 65,300 2020 90,437 2021 84,878 2022 74,255 2023 67,089 Thereafter 305,725 $ 687,684 As of March 31, 2019 , the Company had approximately 110 tenants over a diverse range of industries and geographic areas in its portfolio of real estate held for investment. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 18 $ 23,877 26.7 % Mining, Oil & Gas Extraction 3 14,705 16.4 % Educational Services 1 11,728 13.1 % Legal Services 17 10,073 11.3 % $ 60,383 67.5 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. No other tenant industries accounted for more than 10% of annualized base rent. The Company had not identified any material tenant credit issues as of March 31, 2019 . During the three months ended March 31, 2019 , the Company recorded an adjustment to rental income of $0.7 million for lease payments that were deemed not probable of collection and a net recovery of bad debt of $0.1 million , which was included in operating, maintenance, and management expense in the accompanying consolidated statements of operations. During the three months ended March 31, 2018 , the Company recorded bad debt expense of $0.1 million , which was included in operating, maintenance, and management expense in the accompanying consolidated statements of operations. As of March 31, 2019 , the Company had a concentration of credit risk related to the following tenant leases that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio (Net Rentable Sq. Ft.) Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration Union Bank Union Bank Plaza Finance 295,563 10.8% $ 13,687 15.3% $ 46.31 01/31/2022 (2)(3) The University of Phoenix Fountainhead Plaza Educational Services 445,957 16.3% 11,728 13.1% 26.30 08/31/2023 (4) Anadarko Petroleum Corporation Granite Tower Mining, Oil & Gas Extraction 360,584 13.2% 12,168 13.6% 33.75 04/30/2021 / 04/30/2033 (5) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) Represents the expiration date of the lease as of March 31, 2019 and does not take into account any tenant renewal options. Pursuant to a lease amendment that the Company entered into with Union Bank on December 31, 2017, Union Bank surrendered 15,829 rentable square feet of its total rentable square footage on March 31, 2018 and 31,320 rentable square feet of its total rentable square footage on June 30, 2018. In addition, Union Bank also surrendered 321 parking area passes on March 31, 2018. During the year ended December 31, 2018, the Company received $11.4 million of lease termination fees from Union Bank, of which $8.5 million was deferred as of December 31, 2018. During the three months ended March 31, 2018 , $0.5 million was recognized as rental income and $0.3 million was recognized as other operating income in the accompanying consolidated statement of operations. During the three months ended March 31, 2019 , $0.5 million was recognized as rental income and $0.2 million was recognized as other operating income in the accompanying consolidated statements of operations, and $7.8 million was deferred as of March 31, 2019 and included in other liabilities on the accompanying consolidated balance sheets. (3) Union Bank has two options to extend the term of this lease for three, four, five, six or seven years per option term, provided that the combined renewal option terms do not exceed 10 years. If Union Bank elects to exercise its extension options, it must extend the lease on (i) the entire office premises or (ii) no less than 200,000 rentable square feet consisting of full floors only plus either all or none of both the retail and vault space. (4) The University of Phoenix has two options to extend the term of this lease for five years per option term. (5) Per the lease agreement, 64,841 rentable square feet will expire on April 30, 2021 and the remainder will expire on April 30, 2033. Anadarko Petroleum Corporation has an option to terminate all or a portion of its leased space effective April 30, 2028 or April 30, 2030. No other tenant accounted for more than 10% of annualized base rent. Geographic Concentration Risk As of March 31, 2019 , the Company’s net investments in real estate in California and New Jersey represented 25.6% and 24.2% of the Company’s total assets, respectively. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California and New Jersey real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders.

TENANT ORIGINATION AND ABSORPTI

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	3 Months Ended
	Mar. 31, 2019
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES	TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES As of March 31, 2019 and December 31, 2018 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities March 31, December 31, March 31, December 31, March 31, December 31, Cost $ 29,192 $ 30,863 $ 835 $ 835 $ (1,154 ) $ (2,635 ) Accumulated amortization (16,139 ) (16,873 ) (629 ) (611 ) 910 2,327 Net amount $ 13,053 $ 13,990 $ 206 $ 224 $ (244 ) $ (308 ) Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three months ended March 31, 2019 and 2018 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Amortization $ (960 ) $ (2,594 ) $ (18 ) $ (583 ) $ 66 $ 402

REAL ESTATE HELD FOR SALE

REAL ESTATE HELD FOR SALE	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
REAL ESTATE HELD FOR SALE	REAL ESTATE HELD FOR SALE During the year ended December 31, 2018 , the Company sold three office buildings that were part of an eight -building office campus. As of March 31, 2019 , the Company classified two office properties as held for sale. The results of operations for the three office buildings sold and the two office properties held for sale are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes certain revenue and expenses related to the Company’s real estate properties that were sold during the year ended December 31, 2018 and the properties held for sale as of March 31, 2019, which were included in continuing operations (in thousands): Three Months Ended March 31, 2019 2018 Revenues Rental income $ 5,172 $ 6,855 Total revenues 5,172 6,855 Expenses Operating, maintenance, and management 1,614 1,614 Real estate taxes and insurance 1,044 1,136 Asset management fees to affiliate 285 436 General and administrative expenses 156 1 Depreciation and amortization 1,598 2,229 Interest expense 482 874 Total expenses $ 5,179 $ 6,290 The following summary presents the major components of assets and liabilities related to real estate held for sale as of March 31, 2019 and December 31, 2018 (in thousands). March 31, 2019 December 31, 2018 Assets related to real estate held for sale Total real estate, at cost $ 112,096 $ 111,570 Accumulated depreciation and amortization (20,307 ) (18,906 ) Real estate held for sale, net 91,789 92,664 Other assets 7,803 7,962 Total assets related to real estate held for sale $ 99,592 $ 100,626 Liabilities related to real estate held for sale Notes payable, net 41,344 41,281 Other liabilities 4 6 Total liabilities related to real estate held for sale $ 41,348 $ 41,287

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2019
Notes Payable [Abstract]
NOTES PAYABLE	NOTES PAYABLE As of March 31, 2019 and December 31, 2018 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of March 31, 2019 Book Value as of December 31, 2018 Contractual Interest Rate as of March 31, 2019 (1) Effective Interest Rate as of March 31, 2019 (1) Payment Type Maturity Date (2) Corporate Technology Centre Mortgage Loan (3) $ 41,547 $ 41,868 3.50% 3.5% Principal & Interest 04/01/2020 Portfolio Loan Facility (4) 375,000 375,000 One-month LIBOR + 1.45% 3.9% Interest Only 03/29/2020 Total notes payable principal outstanding $ 416,547 $ 416,868 Deferred financing costs, net (1,328 ) (1,660 ) Total notes payable, net $ 415,219 $ 415,208 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2019 . Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2019 , using interest rate indices as of March 31, 2019 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of March 31, 2019 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) The loan documents require the Company to reserve for the annual charges for real estate taxes by making monthly deposits to an account held by the lender, subject to certain terms and conditions contained in the loan documents. (4) The Portfolio Loan Facility is secured by the 100 & 200 Campus Drive Buildings, the 300-600 Campus Drive Buildings, Willow Oaks Corporate Center, Pierre Laclede Center, Union Bank Plaza, Emerald View at Vista Center, Granite Tower and Fountainhead Plaza. As of March 31, 2019 , $375.0 million of term debt of the Portfolio Loan Facility was outstanding and $125.0 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. During the three months ended March 31, 2019 and 2018 , the Company incurred $4.5 million and $5.0 million of interest expense, respectively. As of March 31, 2019 and December 31, 2018 , $1.5 million and $1.3 million , respectively, of interest expense were payable. Included in interest expense for the three months ended March 31, 2019 and 2018 were $0.3 million and $0.3 million of amortization of deferred financing costs, respectively. Also included in interest expense for the three months ended March 31, 2018 was $0.3 million of debt refinancing costs. The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of March 31, 2019 (in thousands): April 1, 2019 through December 31, 2019 $ 983 2020 415,564 $ 416,547 Certain of the Company’s notes payable contain financial debt covenants. As of March 31, 2019 , the Company was in compliance with these debt covenants.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis (e.g., carrying value of impaired long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of assets and liabilities for which it is practicable to estimate the fair value: Cash and cash equivalents, restricted cash, rent and other receivables, and accounts payable and accrued liabilities: These balances approximate their fair values due to the short maturities of these items. Notes payable: The fair value of the Company’s notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs. The following were the face values, carrying amounts and fair values of the Company’s notes payable as of March 31, 2019 and December 31, 2018 , which carrying amounts do not generally approximate the fair values (in thousands): March 31, 2019 December 31, 2018 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 416,547 $ 415,219 $ 417,226 $ 416,868 $ 415,208 $ 416,163 Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. Low levels of transaction volume for certain financial instruments have made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company has entered into the Advisory Agreement with the Advisor. This agreement entitles the Advisor to specified fees upon the provision of certain services with regard to the management of the Company’s investments, among other services, and the disposition of investments, as well as reimbursement of certain costs incurred by the Advisor in providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Company has also entered into a fee reimbursement agreement with the Dealer Manager pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’s participation in the Depository Trust & Clearing Corporation Alternative Investment Product Platform with respect to certain accounts of the Company’s investors serviced through the platform. The Advisor and Dealer Manager also serve or served as the advisor and dealer manager, respectively, for KBS Real Estate Investment Trust, Inc. (“KBS REIT I”) (which liquidated in December 2018), KBS Real Estate Investment Trust III, Inc. (“KBS REIT III”), KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”), KBS Legacy Partners Apartment REIT, Inc. (“KBS Legacy Partners Apartment REIT”) (which liquidated in December 2018), KBS Strategic Opportunity REIT II, Inc. (“KBS Strategic Opportunity REIT II”) and KBS Growth & Income REIT, Inc. (“KBS Growth & Income REIT”). On January 6, 2014, the Company, together with KBS REIT I, KBS REIT III, KBS Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT, KBS Strategic Opportunity REIT II, the Dealer Manager, the Advisor and other KBS-affiliated entities, entered into an errors and omissions and directors and officers liability insurance program where the lower tiers of such insurance coverage are shared. The cost of these lower tiers is allocated by the Advisor and its insurance broker among each of the various entities covered by the program, and is billed directly to each entity. In June 2015, KBS Growth & Income REIT was added to the insurance program at terms similar to those described above. In June 2018, the Company renewed its participation in the program. The program is effective through June 30, 2019. At renewal, KBS Strategic Opportunity REIT, KBS Strategic Opportunity REIT II and KBS Legacy Partners Apartment REIT elected to cease participation in the program and obtained separate insurance coverage. KBS REIT I elected to cease participation in the program at the June 2017 renewal and obtained separate insurance coverage. During the three months ended March 31, 2019 and 2018 , no other business transactions occurred between the Company and KBS REIT I, KBS REIT III, KBS Strategic Opportunity REIT, KBS Legacy Partners Apartment REIT, KBS Strategic Opportunity REIT II, KBS Growth & Income REIT, the Advisor, the Dealer Manager or other KBS-affiliated entities. Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2019 and 2018 , respectively, and any related amounts payable as of March 31, 2019 and December 31, 2018 (in thousands): Incurred Payable as of Three Months Ended March 31, March 31, December 31, 2019 2018 2019 2018 Expensed Asset management fees $ 2,657 $ 2,775 $ — $ — Reimbursement of operating expenses (1) 80 78 78 55 $ 2,737 $ 2,853 $ 78 $ 55 _____________________ (1) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor under the Advisory Agreement. The Company has reimbursed the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $63,000 and $66,000 for the three months ended March 31, 2019 and 2018 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2019 and 2018 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the disposition of real estate investments; management of the daily operations of the Company’s real estate investment portfolio; and other general and administrative responsibilities. In the event the Advisor is unable to provide any of these services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Compliance with existing environmental laws is not expected to have a material adverse effect on the Company’s financial condition and results of operations as of March 31, 2019 . Legal Matters From time to time, the Company is party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Distributions Paid On April 1, 2019, the Company paid distributions of $3.8 million , which related to distributions declared for March 2019 in the amount of $0.02062500 per share of common stock to stockholders of record as of the close of business on March 18, 2019. On May 1, 2019, the Company paid distributions of $3.8 million , which related to distributions declared for April 2019 in the amount of $0.02062500 per share of common stock to stockholders of record as of the close of business on April 18, 2019. Distributions Authorized On May 14, 2019, the Company’s board of directors authorized a May 2019 distribution in the amount of $0.02062500 per share of common stock to stockholders of record as of the close of business on May 17, 2019, which the Company expects to pay in June 2019, and a June 2019 distribution in the amount of $0.02062500 per share of common stock to stockholders of record as of the close of business on June 18, 2019, which the Company expects to pay in July 2019.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company, KBS REIT Holdings II, the Operating Partnership, and their direct and indirect wholly owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes. Actual results could materially differ from those estimates.
Per Share Data	Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock equals basic net income (loss) per share of common stock as there were no potentially dilutive securities outstanding during the three months ended March 31, 2019 and 2018 .
Segments	The Company invested in core real estate properties and real estate-related investments with the goal of acquiring a portfolio of income-producing investments. The Company’s real estate properties exhibit similar long-term financial performance and have similar economic characteristics to each other. As of March 31, 2019 , the Company aggregated its investments in real estate properties into one reportable business segment.
Reclassifications	Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. Upon adoption of the lease accounting standards of Topic 842 on January 1, 2019 (described below), the Company accounted for tenant reimbursements for property taxes, insurance and common area maintenance as variable lease payments and recorded these amounts as rental income on the statement of operations. For the three months ended March 31, 2018 , the Company reclassified $2.9 million of tenant reimbursement revenue for property taxes, insurance, and common area maintenance to rental income for comparability purposes. In addition, during the three months ended March 31, 2019 , the Company classified two office properties as held for sale. As a result, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets for all periods presented.
Revenue Recognition	Real Estate On January 1, 2019, the Company adopted the lease accounting standards under Topic 842 including the package of practical expedients for all leases that commenced before the effective date of January 1, 2019. Accordingly, the Company (i) did not reassess whether any expired or existing contracts are or contain leases, (ii) did not reassess the lease classification for any expired or existing lease, and (iii) did not reassess initial direct costs for any existing leases. The Company did not elect the practical expedient related to using hindsight to reevaluate the lease term. In addition, the Company adopted the practical expedient for land easements and did not assess whether existing or expired land easements that were not previously accounted for as leases under the lease accounting standards of Topic 840 are or contain a lease under Topic 842. In addition, Topic 842 provides an optional transition method to allow entities to apply the new lease accounting standards at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. The Company adopted this transition method upon its adoption of the lease accounting standards of Topic 842, which did not result in a cumulative effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company’s comparative periods presented in the financial statements will continue to be reported under the lease accounting standards of Topic 840. In accordance with Topic 842, tenant reimbursements for property taxes and insurance are included in the single lease component of the lease contract (the right of the lessee to use the leased space) and therefore are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations beginning January 1, 2019. In addition, the Company adopted the practical expedient available under Topic 842 to not separate nonlease components from the associated lease component and instead to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue recognition standard (Topic 606) and if certain conditions are met, specifically related to tenant reimbursements for common area maintenance which would otherwise be accounted for under the revenue recognition standard. The Company believes the two conditions have been met for tenant reimbursements for common area maintenance as (i) the timing and pattern of transfer of the nonlease components and associated lease components are the same and (ii) the lease component would be classified as an operating lease. Accordingly, tenant reimbursements for common area maintenance are also accounted for as variable lease payments and recorded as rental income on the Company’s statement of operations beginning January 1, 2019. The Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectibility is probable and records amounts expected to be received in later years as deferred rent receivable. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance (including amounts that can be taken in the form of cash or a credit against the tenant’s rent) that is funded is treated as a lease incentive and amortized as a reduction of rental revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how a tenant improvement allowance may be spent; • whether the lessee or lessor supervises the construction and bears the risk of cost overruns; • whether the amount of a tenant improvement allowance is in excess of market rates; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. In accordance with Topic 842, the Company makes a determination of whether the collectibility of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and tenant reimbursements and would recognize rental income only if cash is received. Beginning January 1, 2019, these changes to the Company’s collectibility assessment are reflected as an adjustment to rental income. Prior to January 1, 2019, bad debt expense related to uncollectible accounts receivable and deferred rent receivable was included in operating, maintenance, and management expense in the statement of operations. Any subsequent changes to the collectibility of the allowance for doubtful accounts as of December 31, 2018, which was recorded prior to the adoption of Topic 842, are recorded in operating, maintenance, and management expense in the statement of operations. Beginning January 1, 2019, the Company, as a lessor, records costs to negotiate or arrange a lease that would have been incurred regardless of whether the lease was obtained, such as legal costs incurred to negotiate an operating lease, as an expense and classify such costs as operating, maintenance, and management expense on the Company’s consolidated statement of operations, as these costs are no longer capitalizable under the definition of initial direct costs under Topic 842.
Square Footage, Occupancy and Other Measures	Square footage, occupancy, number of tenants and other similar measures, including annualized base rent and annualized base rent per square foot, used to describe real estate investments included in these condensed notes to the consolidated financial statements are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
Recently Issued Accounting Standards Update	In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU No. 2016-13”). ASU No. 2016-13 affects entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. The amendments in ASU No. 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. ASU No. 2016-13 also amends the impairment model for available-for-sale securities. An entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. ASU No. 2016-13 also requires new disclosures. For financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for credit losses, including changes in the factors that influenced management’s estimate of expected credit losses and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the asset’s origination for as many as five annual periods. For available-for-sale securities, an entity will be required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ASU No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impact of adopting ASU No. 2016-13 on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. ASU No. 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and to disclose the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop the Level 3 fair value measurements. In addition, public entities are required to provide information about the measurement uncertainty of recurring Level 3 fair value measurements from the use of significant unobservable inputs if those inputs reasonably could have been different at the reporting date. ASU No. 2018-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is still evaluating the impact of adopting ASU No. 2018-13 on its financial statements, but does not expect the adoption of ASU No. 2018-13 to have a material impact on its financial statements.

REAL ESTATE HELD FOR INVESTME_2

REAL ESTATE HELD FOR INVESTMENT (Tables)	3 Months Ended
	Mar. 31, 2019
Real Estate [Abstract]
Schedule of Real Estate Investments	The following table summarizes the Company’s real estate portfolio as of March 31, 2019 (in thousands): Property Date Acquired City State Property Type Total Real Estate at Cost Accumulated Depreciation and Amortization Total Real Estate, Net 100 & 200 Campus Drive Buildings 09/09/2008 Florham Park NJ Office $ 154,525 $ (17,997 ) $ 136,528 300-600 Campus Drive Buildings 10/10/2008 Florham Park NJ Office 162,054 (23,138 ) 138,916 Willow Oaks Corporate Center 08/26/2009 Fairfax VA Office 111,740 (23,282 ) 88,458 Union Bank Plaza 09/15/2010 Los Angeles CA Office 187,620 (30,204 ) 157,416 Granite Tower 12/16/2010 Denver CO Office 137,233 (29,563 ) 107,670 Fountainhead Plaza 09/13/2011 Tempe AZ Office 119,384 (24,621 ) 94,763 Corporate Technology Centre 03/28/2013 San Jose CA Office 148,069 (13,644 ) 134,425 $ 1,020,625 $ (162,449 ) $ 858,176
Schedules of Concentration of Risk, by Risk Factor	As of March 31, 2019 , the following properties represented more than 10% of the Company’s total assets: Property Location Rentable Square Feet Total Real Estate, Net (in thousands) Percentage of Total Assets Annualized Base Rent (in thousands) (1) Average Annualized Base Rent per Sq. Ft. Occupancy Union Bank Plaza Los Angeles, CA 627,334 $ 157,416 13.8 % $ 19,921 $ 43.25 73 % 300-600 Campus Drive Buildings Florham Park, NJ 578,388 138,916 12.2 % 17,895 33.58 92 % 100 & 200 Campus Drive Buildings Florham Park, NJ 590,458 136,528 12.0 % 13,715 30.57 76 % Corporate Technology Centre (2) San Jose, CA 415,700 134,425 11.8 % — — — % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) The lease for the single tenant who occupied Corporate Technology Centre expired on October 31, 2018. As of March 31, 2019 , the Company had a concentration of credit risk related to the following tenant leases that represented more than 10% of the Company’s annualized base rent: Annualized Base Rent Statistics Tenant Property Tenant Industry Square Feet % of Portfolio (Net Rentable Sq. Ft.) Annualized Base Rent (in thousands) (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Sq. Ft. Lease Expiration Union Bank Union Bank Plaza Finance 295,563 10.8% $ 13,687 15.3% $ 46.31 01/31/2022 (2)(3) The University of Phoenix Fountainhead Plaza Educational Services 445,957 16.3% 11,728 13.1% 26.30 08/31/2023 (4) Anadarko Petroleum Corporation Granite Tower Mining, Oil & Gas Extraction 360,584 13.2% 12,168 13.6% 33.75 04/30/2021 / 04/30/2033 (5) _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. (2) Represents the expiration date of the lease as of March 31, 2019 and does not take into account any tenant renewal options. Pursuant to a lease amendment that the Company entered into with Union Bank on December 31, 2017, Union Bank surrendered 15,829 rentable square feet of its total rentable square footage on March 31, 2018 and 31,320 rentable square feet of its total rentable square footage on June 30, 2018. In addition, Union Bank also surrendered 321 parking area passes on March 31, 2018. During the year ended December 31, 2018, the Company received $11.4 million of lease termination fees from Union Bank, of which $8.5 million was deferred as of December 31, 2018. During the three months ended March 31, 2018 , $0.5 million was recognized as rental income and $0.3 million was recognized as other operating income in the accompanying consolidated statement of operations. During the three months ended March 31, 2019 , $0.5 million was recognized as rental income and $0.2 million was recognized as other operating income in the accompanying consolidated statements of operations, and $7.8 million was deferred as of March 31, 2019 and included in other liabilities on the accompanying consolidated balance sheets. (3) Union Bank has two options to extend the term of this lease for three, four, five, six or seven years per option term, provided that the combined renewal option terms do not exceed 10 years. If Union Bank elects to exercise its extension options, it must extend the lease on (i) the entire office premises or (ii) no less than 200,000 rentable square feet consisting of full floors only plus either all or none of both the retail and vault space. (4) The University of Phoenix has two options to extend the term of this lease for five years per option term. (5) Per the lease agreement, 64,841 rentable square feet will expire on April 30, 2021 and the remainder will expire on April 30, 2033. Anadarko Petroleum Corporation has an option to terminate all or a portion of its leased space effective April 30, 2028 or April 30, 2030. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Annualized Base Rent Finance 18 $ 23,877 26.7 % Mining, Oil & Gas Extraction 3 14,705 16.4 % Educational Services 1 11,728 13.1 % Legal Services 17 10,073 11.3 % $ 60,383 67.5 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of March 31, 2019 , adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.
Schedule of Future Minimum Rental Income for Company's Properties	As of March 31, 2019 , the future minimum rental income from the Company’s properties held for investment under non-cancelable operating leases was as follows (in thousands): April 1, 2019 through December 31, 2019 $ 65,300 2020 90,437 2021 84,878 2022 74,255 2023 67,089 Thereafter 305,725 $ 687,684

TENANT ORIGINATION AND ABSORP_2

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities	As of March 31, 2019 and December 31, 2018 , the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities March 31, December 31, March 31, December 31, March 31, December 31, Cost $ 29,192 $ 30,863 $ 835 $ 835 $ (1,154 ) $ (2,635 ) Accumulated amortization (16,139 ) (16,873 ) (629 ) (611 ) 910 2,327 Net amount $ 13,053 $ 13,990 $ 206 $ 224 $ (244 ) $ (308 )
Amortization of Tenant Origination and Absorption Costs, Above-Market Leases and Below-Market Lease Liabilities	Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three months ended March 31, 2019 and 2018 were as follows (in thousands): Tenant Origination and Absorption Costs Above-Market Lease Assets Below-Market Lease Liabilities For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Amortization $ (960 ) $ (2,594 ) $ (18 ) $ (583 ) $ 66 $ 402

REAL ESTATE HELD FOR SALE (Tabl

REAL ESTATE HELD FOR SALE (Tables)	3 Months Ended
	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Revenue and Expenses of Real Estate Disposed of by Sale	The following table summarizes certain revenue and expenses related to the Company’s real estate properties that were sold during the year ended December 31, 2018 and the properties held for sale as of March 31, 2019, which were included in continuing operations (in thousands): Three Months Ended March 31, 2019 2018 Revenues Rental income $ 5,172 $ 6,855 Total revenues 5,172 6,855 Expenses Operating, maintenance, and management 1,614 1,614 Real estate taxes and insurance 1,044 1,136 Asset management fees to affiliate 285 436 General and administrative expenses 156 1 Depreciation and amortization 1,598 2,229 Interest expense 482 874 Total expenses $ 5,179 $ 6,290
Schedule of Assets and Liabilities of Real Estate Held-for-Sale	The following summary presents the major components of assets and liabilities related to real estate held for sale as of March 31, 2019 and December 31, 2018 (in thousands). March 31, 2019 December 31, 2018 Assets related to real estate held for sale Total real estate, at cost $ 112,096 $ 111,570 Accumulated depreciation and amortization (20,307 ) (18,906 ) Real estate held for sale, net 91,789 92,664 Other assets 7,803 7,962 Total assets related to real estate held for sale $ 99,592 $ 100,626 Liabilities related to real estate held for sale Notes payable, net 41,344 41,281 Other liabilities 4 6 Total liabilities related to real estate held for sale $ 41,348 $ 41,287

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Payable [Abstract]
Schedule of Long-term Debt Instruments	As of March 31, 2019 and December 31, 2018 , the Company’s notes payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of March 31, 2019 Book Value as of December 31, 2018 Contractual Interest Rate as of March 31, 2019 (1) Effective Interest Rate as of March 31, 2019 (1) Payment Type Maturity Date (2) Corporate Technology Centre Mortgage Loan (3) $ 41,547 $ 41,868 3.50% 3.5% Principal & Interest 04/01/2020 Portfolio Loan Facility (4) 375,000 375,000 One-month LIBOR + 1.45% 3.9% Interest Only 03/29/2020 Total notes payable principal outstanding $ 416,547 $ 416,868 Deferred financing costs, net (1,328 ) (1,660 ) Total notes payable, net $ 415,219 $ 415,208 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of March 31, 2019 . Effective interest rate is calculated as the actual interest rate in effect as of March 31, 2019 , using interest rate indices as of March 31, 2019 , where applicable. (2) Represents the initial maturity date or the maturity date as extended as of March 31, 2019 ; subject to certain conditions, the maturity dates of certain loans may be extended beyond the maturity date shown. (3) The loan documents require the Company to reserve for the annual charges for real estate taxes by making monthly deposits to an account held by the lender, subject to certain terms and conditions contained in the loan documents. (4) The Portfolio Loan Facility is secured by the 100 & 200 Campus Drive Buildings, the 300-600 Campus Drive Buildings, Willow Oaks Corporate Center, Pierre Laclede Center, Union Bank Plaza, Emerald View at Vista Center, Granite Tower and Fountainhead Plaza. As of March 31, 2019 , $375.0 million of term debt of the Portfolio Loan Facility was outstanding and $125.0 million of revolving debt remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents.
Schedule of Maturities of Long-term Debt	The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of March 31, 2019 (in thousands): April 1, 2019 through December 31, 2019 $ 983 2020 415,564 $ 416,547

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Face Value, Carrying Amounts and Fair Value	The following were the face values, carrying amounts and fair values of the Company’s notes payable as of March 31, 2019 and December 31, 2018 , which carrying amounts do not generally approximate the fair values (in thousands): March 31, 2019 December 31, 2018 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 416,547 $ 415,219 $ 417,226 $ 416,868 $ 415,208 $ 416,163

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Schedule of Related Party Costs	Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2019 and 2018 , respectively, and any related amounts payable as of March 31, 2019 and December 31, 2018 (in thousands): Incurred Payable as of Three Months Ended March 31, March 31, December 31, 2019 2018 2019 2018 Expensed Asset management fees $ 2,657 $ 2,775 $ — $ — Reimbursement of operating expenses (1) 80 78 78 55 $ 2,737 $ 2,853 $ 78 $ 55 _____________________ (1) Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cybersecurity related expenses incurred by the Advisor under the Advisory Agreement. The Company has reimbursed the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $63,000 and $66,000 for the three months ended March 31, 2019 and 2018 , respectively, and were the only type of employee costs reimbursed under the Advisory Agreement for the three months ended March 31, 2019 and 2018 . The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company

ORGANIZATION (Details)

ORGANIZATION (Details) $ in Thousands	May 21, 2018shares	Mar. 31, 2019USD ($)propertyshares	Mar. 31, 2018USD ($)shares	Mar. 22, 2011USD ($)shares	Mar. 31, 2019USD ($)propertyshares	Dec. 31, 2018property
Organizational Structure [Line Items]
Partnership interest in Operating Partnership		0.10%
Partnership interest in the Operating Partnership and is its sole limited partner		99.90%
Issuance of common stock, value | $				$ 1,800,000
Shares of common stock sold under dividend reinvestment plan, value | $					$ 298,200
Redemptions of common stock | $		$ 1,367	$ 1,277
Common Stock
Organizational Structure [Line Items]
Issuance of common stock, shares | shares				182,681,633
Shares of common stock sold under dividend reinvestment plan, shares | shares					30,903,504
Redemptions of common stock (in shares) | shares		275,998	261,092		27,416,341
Redemptions of common stock | $		$ 3	$ 3		$ 253,100
KBS Capital Advisors LLC
Organizational Structure [Line Items]
Period of Advisory Agreement renewal	1 year
Period of termination notice	60 days
KBS Capital Advisors LLC | Common Stock
Organizational Structure [Line Items]
Shares held by affiliate | shares	20,000
Held-for-sale
Organizational Structure [Line Items]
Number of real estate properties		2			2
Office Properties
Organizational Structure [Line Items]
Number of real estate properties		8			8	8
Office Properties | Held-for-sale
Organizational Structure [Line Items]
Number of real estate properties		2			2
Office Campus
Organizational Structure [Line Items]
Number of real estate properties		1			1
Office Buildings, Campus
Organizational Structure [Line Items]
Number of real estate properties		5			5

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019segmentproperty$ / sharesshares	Mar. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017segment	Dec. 31, 2018property
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Potentially dilutive securities | shares	0	0
Distributions declared per common share (in dollars per share) | $ / shares	$ 0.062	$ 0.060
Number of reportable segments | segment	1		1
Held-for-sale
Real Estate [Line Items]
Number of real estate properties	2
Office Properties
Real Estate [Line Items]
Number of real estate properties	8			8
Office Properties | Held-for-sale
Real Estate [Line Items]
Number of real estate properties	2
Accounting Standards Update 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Tenant reimbursements | $		$ 2.9

REAL ESTATE HELD FOR INVESTME_3

REAL ESTATE HELD FOR INVESTMENT (Narrative) (Details) ft² in Millions	Mar. 31, 2019ft²property	Dec. 31, 2018property
Real Estate Properties [Line Items]
Occupancy	71.00%
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties	8	8
Office Properties | Held-for-Investment
Real Estate Properties [Line Items]
Number of real estate properties	6
Office Buildings, Campus
Real Estate Properties [Line Items]
Number of real estate properties	5
Rentable square feet | ft²	3.8
Office Buildings, Campus | Excluding Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties	5

REAL ESTATE HELD FOR INVESTME_4

REAL ESTATE HELD FOR INVESTMENT (Schedule of Real Estate Investments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Real Estate Properties [Line Items]
Total Real Estate at Cost	$ 1,020,625	$ 1,016,368
Accumulated Depreciation and Amortization	(162,449)	(154,825)
Total real estate held for investment, net	858,176	$ 861,543
Office Properties
Real Estate Properties [Line Items]
Total Real Estate at Cost	1,020,625
Accumulated Depreciation and Amortization	(162,449)
Total real estate held for investment, net	$ 858,176
100 & 200 Campus Drive Buildings | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 9, 2008
Total Real Estate at Cost	$ 154,525
Accumulated Depreciation and Amortization	(17,997)
Total real estate held for investment, net	$ 136,528
300-600 Campus Drive Buildings | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Oct. 10, 2008
Total Real Estate at Cost	$ 162,054
Accumulated Depreciation and Amortization	(23,138)
Total real estate held for investment, net	$ 138,916
Willow Oaks Corporate Center | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Aug. 26, 2009
Total Real Estate at Cost	$ 111,740
Accumulated Depreciation and Amortization	(23,282)
Total real estate held for investment, net	$ 88,458
Union Bank Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 15, 2010
Total Real Estate at Cost	$ 187,620
Accumulated Depreciation and Amortization	(30,204)
Total real estate held for investment, net	$ 157,416
Granite Tower | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Dec. 16, 2010
Total Real Estate at Cost	$ 137,233
Accumulated Depreciation and Amortization	(29,563)
Total real estate held for investment, net	$ 107,670
Fountainhead Plaza | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Sep. 13, 2011
Total Real Estate at Cost	$ 119,384
Accumulated Depreciation and Amortization	(24,621)
Total real estate held for investment, net	$ 94,763
Corporate Technology Centre | Office Properties
Real Estate Properties [Line Items]
Date Acquired	Mar. 28, 2013
Total Real Estate at Cost	$ 148,069
Accumulated Depreciation and Amortization	(13,644)
Total real estate held for investment, net	$ 134,425

REAL ESTATE HELD FOR INVESTME_5

REAL ESTATE HELD FOR INVESTMENT (Properties Represented More than 10% of Company’s Total Assets) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)ft²$ / ft²	Dec. 31, 2018USD ($)
Real Estate Properties [Line Items]
Total Real Estate, Net	$ 858,176	$ 861,543
Percentage of Total Assets	67.50%
Annualized Base Rent	$ 60,383
Occupancy	71.00%
Assets, Total | Union Bank Plaza
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	627,334
Total Real Estate, Net	$ 157,416
Percentage of Total Assets	13.80%
Annualized Base Rent	$ 19,921
Average Annualized Base Rent per Sq. Ft. | $ / ft²	43.25
Occupancy	73.00%
Assets, Total | 300-600 Campus Drive Buildings
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	578,388
Total Real Estate, Net	$ 138,916
Percentage of Total Assets	12.20%
Annualized Base Rent	$ 17,895
Average Annualized Base Rent per Sq. Ft. | $ / ft²	33.58
Occupancy	92.00%
Assets, Total | 100 & 200 Campus Drive Buildings
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	590,458
Total Real Estate, Net	$ 136,528
Percentage of Total Assets	12.00%
Annualized Base Rent	$ 13,715
Average Annualized Base Rent per Sq. Ft. | $ / ft²	30.57
Occupancy	76.00%
Assets, Total | Corporate Technology Centre
Real Estate Properties [Line Items]
Rentable Square Feet | ft²	415,700
Total Real Estate, Net	$ 134,425
Percentage of Total Assets	11.80%
Annualized Base Rent	$ 0
Average Annualized Base Rent per Sq. Ft. | $ / ft²	0
Occupancy	0.00%

REAL ESTATE HELD FOR INVESTME_6

REAL ESTATE HELD FOR INVESTMENT (Operating Leases) (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)tenant	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Operating Leased Assets [Line Items]
Deferred rent recognized	$ (1,788)	$ (873)
Deferred rent receivables	82,300		$ 84,000
Unamortized lease incentives	$ 40,700		41,700
Number of tenants | tenant	110
Recorded bad debt expense related to tenant	$ 0	71
Other liabilities, at fair value
Operating Leased Assets [Line Items]
Security deposit liability	3,000		2,500
Accounts payable and accrued liabilities
Operating Leased Assets [Line Items]
Lease incentive, payable	$ 34,700		$ 35,200
Maximum
Operating Leased Assets [Line Items]
Operating lease, term	14 years 1 month 6 days
Weighted Average
Operating Leased Assets [Line Items]
Operating lease, term	6 years 3 months 18 days
Adjustment to Rental Income
Operating Leased Assets [Line Items]
Recorded bad debt expense related to tenant	$ 700
Operating, Maintenance, and Management Expense
Operating Leased Assets [Line Items]
Recorded bad debt expense related to tenant	$ (100)	$ 100

REAL ESTATE HELD FOR INVESTME_7

REAL ESTATE HELD FOR INVESTMENT (Future Minimum Rental Income) (Details) $ in Thousands	Mar. 31, 2019USD ($)
Real Estate [Abstract]
April 1, 2019 through December 31, 2019	$ 65,300
2020	90,437
2021	84,878
2022	74,255
2023	67,089
Thereafter	305,725
Future minimum rental income	$ 687,684

REAL ESTATE HELD FOR INVESTME_8

REAL ESTATE HELD FOR INVESTMENT (Highest Tenant Industry Concentrations- Grater than 10% of Annual Base Rent) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)tenant
Concentration Risk [Line Items]
Number of Tenants | tenant	110
Annualized Base Rent | $	$ 60,383
Percentage of Annualized Base Rent	67.50%
Finance
Concentration Risk [Line Items]
Number of Tenants | tenant	18
Annualized Base Rent | $	$ 23,877
Percentage of Annualized Base Rent	26.70%
Mining, Oil & Gas Extraction
Concentration Risk [Line Items]
Number of Tenants | tenant	3
Annualized Base Rent | $	$ 14,705
Percentage of Annualized Base Rent	16.40%
Educational Services
Concentration Risk [Line Items]
Number of Tenants | tenant	1
Annualized Base Rent | $	$ 11,728
Percentage of Annualized Base Rent	13.10%
Legal Services
Concentration Risk [Line Items]
Number of Tenants | tenant	17
Annualized Base Rent | $	$ 10,073
Percentage of Annualized Base Rent	11.30%

REAL ESTATE HELD FOR INVESTME_9

REAL ESTATE HELD FOR INVESTMENT (Concentration of Credit Risk for Tenant Leases) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019USD ($)ft²extension$ / ft²	Mar. 31, 2018USD ($)ft²	Dec. 31, 2018USD ($)	Jun. 30, 2018ft²
Real Estate Properties [Line Items]
Annualized Base Rent	$ 60,383
Rental income	27,885	$ 33,127
Other operating income	$ 1,997	$ 2,289
Tenant Lease - Union Bank Plaza
Real Estate Properties [Line Items]
Square Feet | ft²	295,563
% of Portfolio (Net Rentable Sq. Ft.)	10.80%
Annualized Base Rent	$ 13,687
% of Portfolio Annualized Base Rent	15.30%
Annualized Base Rent per Sq. Ft. | $ / ft²	46.31
Square feet surrender | ft²		15,829		31,320
Termination of lease			$ 11,400
Rental income	$ 500	$ 500
Other operating income	$ 200	$ 300
Extension option | extension	2
Tenant Lease - Union Bank Plaza | Maximum
Real Estate Properties [Line Items]
Extension period	10 years
Tenant Lease - Union Bank Plaza | Minimum
Real Estate Properties [Line Items]
Rentable area required for extension option (less than) | ft²	200,000
Tenant Lease - Union Bank Plaza | Other Liabilities
Real Estate Properties [Line Items]
Deferred revenue	$ 7,800		$ 8,500
Tenant Lease - The University of Phoenix
Real Estate Properties [Line Items]
Square Feet | ft²	445,957
% of Portfolio (Net Rentable Sq. Ft.)	16.30%
Annualized Base Rent	$ 11,728
% of Portfolio Annualized Base Rent	13.10%
Annualized Base Rent per Sq. Ft. | $ / ft²	26.30
Extension option | extension	2
Extension period	5 years
Term Lease - Anadarko Petroleum Corporation
Real Estate Properties [Line Items]
Square Feet | ft²	360,584
% of Portfolio (Net Rentable Sq. Ft.)	13.20%
Annualized Base Rent	$ 12,168
% of Portfolio Annualized Base Rent	13.60%
Annualized Base Rent per Sq. Ft. | $ / ft²	33.75
Term Lease - Anadarko Petroleum Corporation | Will Expire on April 30, 2021
Real Estate Properties [Line Items]
Square Feet | ft²	64,841

REAL ESTATE HELD FOR INVESTM_10

REAL ESTATE HELD FOR INVESTMENT (Geographic Concentration Risk) (Details)	3 Months Ended
	Mar. 31, 2019
Concentration Risk [Line Items]
Concentration risk, percentage	67.50%
Assets, Total | California
Concentration Risk [Line Items]
Concentration risk, percentage	25.60%
Assets, Total | New Jersey
Concentration Risk [Line Items]
Concentration risk, percentage	24.20%

TENANT ORIGINATION AND ABSORP_3

TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Tenant Origination and Absorption Costs, Above-Market Lease Assets and Below-Market Lease Liabilities [Abstract]
Tenant Origination And Absorption Costs, Cost	$ 29,192		$ 30,863
Tenant Origination and Absorption Costs, Accumulated amortization	(16,139)		(16,873)
Tenant Origination and Absorption Costs, Net amount	13,053		13,990
Tenant Origination and Absorption Costs, Amortization	(960)	$ (2,594)
Above-Market Lease Assets, Cost	835		835
Above-Market Lease Assets, Accumulated amortization	(629)		(611)
Above-Market Lease Assets, Net amount	206		224
Above-Market Lease Assets, Amortization	(18)	(583)
Below-Market Lease Liabilities, Cost	(1,154)		(2,635)
Below-Market Lease Liabilities, Accumulated amortization	910		2,327
Below-Market Lease Liabilities, Net amount	(244)		$ (308)
Below-Market Lease Liabilities, Amortization	$ 66	$ 402

REAL ESTATE HELD FOR SALE (Narr

REAL ESTATE HELD FOR SALE (Narrative) (Details) - property	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Dec. 31, 2018
Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties		2
Office Properties
Real Estate Properties [Line Items]
Number of real estate properties		8	8
Office Properties | Disposed of by Sale
Real Estate Properties [Line Items]
Number of real estate properties sold	3
Office Properties | Held-for-sale
Real Estate Properties [Line Items]
Number of real estate properties		2

REAL ESTATE HELD FOR SALE (Reve

REAL ESTATE HELD FOR SALE (Revenue and Expenses of Real Estate Held-for-Sale) (Details) - Disposed of by Sale - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Rental income	$ 5,172	$ 6,855
Total revenues	5,172	6,855
Expenses
Operating, maintenance, and management	1,614	1,614
Real estate taxes and insurance	1,044	1,136
Asset management fees to affiliate	285	436
General and administrative expenses	156	1
Depreciation and amortization	1,598	2,229
Interest expense	482	874
Total expenses	$ 5,179	$ 6,290

REAL ESTATE HELD FOR SALE (Sche

REAL ESTATE HELD FOR SALE (Schedule of Assets and Liabilities Related to Real Estate Held for Sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Liabilities related to real estate held for sale
Total liabilities related to real estate held for sale	$ 41,344	$ 41,281
Held-for-sale
Assets related to real estate held for sale
Total real estate, at cost	112,096	111,570
Accumulated depreciation and amortization	(20,307)	(18,906)
Real estate held for sale, net	91,789	92,664
Other assets	7,803	7,962
Total assets related to real estate held for sale	99,592	100,626
Liabilities related to real estate held for sale
Notes payable, net	41,344	41,281
Other liabilities	4	6
Total liabilities related to real estate held for sale	$ 41,348	$ 41,287

NOTES PAYABLE (Schedule of Long

NOTES PAYABLE (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 416,547	$ 416,868
Deferred financing costs, net	(1,328)	(1,660)
Total notes payable, net	415,219	415,208
Portfolio Loan Facility | Secured Debt
Debt Instrument [Line Items]
Total notes payable principal outstanding	375,000
Remaining borrowing capacity	125,000
Mortgage | Corporate Technology Centre Mortgage Loan
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 41,547	41,868
Contractual Interest Rate	3.50%
Effective Interest Rate	3.50%
Maturity Date	Apr. 1, 2020
Mortgage | Portfolio Loan Facility
Debt Instrument [Line Items]
Total notes payable principal outstanding	$ 375,000	$ 375,000
Effective Interest Rate	3.90%
Maturity Date	Mar. 29, 2020
Mortgage | Portfolio Loan Facility | One-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Notes Payable [Abstract]
Interest expense	$ 4,481	$ 4,974
Interest payable, current	1,500		$ 1,300
Amortization of deferred financing costs	$ 332	274
Debt refinancing costs		$ 300

NOTES PAYABLE (Schedule of Matu

NOTES PAYABLE (Schedule of Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Notes Payable [Abstract]
April 1, 2019 through December 31, 2019	$ 983
2020	415,564
Total notes payable, net	$ 416,547	$ 416,868

FAIR VALUE DISCLOSURES (Schedul

FAIR VALUE DISCLOSURES (Schedule of Face Value, Carrying Amounts and Fair Value) (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Face Value	$ 416,547,000	$ 416,868,000
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	415,219,000	415,208,000
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Value	$ 417,226,000	$ 416,163,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Payable as of	$ 78		$ 55
Administrative fees	63	$ 66
Advisor and Dealer Manager
Related Party Transaction [Line Items]
Expenses	2,737	2,853
Payable as of	78		55
Advisor and Dealer Manager | Asset management fees
Related Party Transaction [Line Items]
Expenses	2,657	2,775
Payable as of	0		0
Advisor and Dealer Manager | Reimbursement of operating expenses
Related Party Transaction [Line Items]
Expenses	80	$ 78
Payable as of	$ 78		$ 55

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions	May 01, 2019	Apr. 01, 2019	Jun. 30, 2019	May 31, 2019	Apr. 30, 2019	Mar. 31, 2019
Dividend Paid
Subsequent Event [Line Items]
Distribution rate per share per day, declared						$ 0.02062500
Dividends Authorized | Scenario, Forecast
Subsequent Event [Line Items]
Distribution rate per share per day, declared			$ 0.02062500	$ 0.02062500
Subsequent Event | Dividend Paid
Subsequent Event [Line Items]
Paid distributions	$ 3.8	$ 3.8
Distribution rate per share per day, declared					$ 0.02062500